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Sydney and Melbourne both threw up very high success rates for the weekend auction clearance. While Sydney’s rate stood at 78.1%, Melbourne held itself in good stead with a figure of 71%. Jonathan Chancellor for the Property Observer writes that the Prestige Market has picked up considerable momentum when compared to the same time last year. Sydney’s auction clearance rate was rallying somewhere near the 60 % mark while Melbourne cut a sorry figure of 57% same time last year.

Some facts for this weekend:

• Sydney’s highest grosser- The Tamarama Duplex for 3 million.
• Melbourne’s highest grosser- The Henham Street property for 2.64 million
• For Melbourne, a few sales like the ones on Grace Street, Albert Park and Malvern may have brought more money than the Henham Street sale; however, they remain unreported till now.
• For Sydney, Maroubra listed 8 properties while Condell Park listed 7 of them.

You can read the whole article here.

Will the Melbourne Auction clearance rate close in on Sydney in recent future?

In his latest article, Cameron Kusher, senior research analyst at RP Data, states that home values of mid-range suburbs across Australia’s capital cities have increased this year.

In Sydney, housing prices for both the mid-priced and the most affordable segment have risen above their previous peak this year. On the other hand, home values of the most expensive suburbs are decreasing.

Home values have risen above their previous peak by 2.8% across the most affordable Sydney suburbs and by 2.4% in the middle priced suburbs.  The most expensive Sydney suburbs have been noticeably weaker by losing about 3.9% compared to their previous peak.

You can read the full article here.

The key to Sydney’s future development lies in dealing with infrastructure issues

Sydney has to achieve growth and expansion for the sake of future generations writes Martin Bregezzo in a new article for the Property Observer. There have been several promises as how easy and affordable it is to build half a million new homes. But the reality is very different. The current average of 17,290 dwellings being constructed annually over the past 5 years is nowhere enough when the actual figures should be somewhere near 25,000 dwellings per year.

Government and Public departments must put in accumulative efforts in building the foundations of proper infrastructures to enable Sydney’s future growth.

• Making approval processes move faster.
• Bringing a common point in order to handle local affordability for various sections of the market.
• Reducing LGAs.
• Complete removal of developer and transaction tariffs.
• High density clustered around transport nodes is an integral element of successful urban development.
• In order to achieve human right to shelter for the future generations, re-evaluation of community participation in providing approvals is important.
• Government role must be strengthened and corrected in view of the current land acquisition process.

Planning in the interest of the people is the only option in Sydney’s future development. The infrastructure must be available for the people and communities (including those living in marginal borders of Sydney) and it needs to be planned for and addressed now.

Read the full article here.

Home values for dwellings (attached and semi-attached homes) reported a leap of 2.8% over the March quarter. Michael Yardney for Property Update suggests how each area has done well, with Perth showing highest growth and every capital city, except Adelaide, contributing to the total sum. Middle-priced housing sector is exhibiting maximum response, posting a hike of 1.6% in value of home dwellings. Contrarily, the lowest-priced and the highest-priced end of the spectrum have displayed a fall of 0.9% and 0.6% respectively.

Between the owner-occupied homes and investment homes, the latter is showing a lot more responsiveness to the prevailing interest-rates (as low as they come). Data mortgage reports and capital gains signals are also sending an optimistic wave for the property market. Read the full article here.

Do you think that the capital gains (4.7%) reported for 2.8 % market leap may be an exception to the rule? I invite your opinion.